FLOKI Drops 41.89% In A Month, But Indicators Suggest Potential 48% Rally

FLOKI, a popular memecoin, has recently experienced a significant price decline, with a 30.90% drop last month and a further 10.99% decrease in the last 24 hours. Despite this bearish sentiment, several market indicators suggest that FLOKI may be poised for a rally.

At the time of writing, FLOKI has hit the lower level of the Bollinger Bands indicator, which acts as a support level. This could signal a potential reversal, with the price forming a green candlestick. If FLOKI continues to rise, it could rally by 48% to $0.00007227, where it may face notable selling pressure. This bullish sentiment is supported by the rebound of the Relative Strength Index (RSI) indicator, which is just before crossing into the oversold region below 30. A sustained move up for the RSI would imply that FLOKI’s bounce off the lower Bollinger Band is strengthening.

However, the Money Flow Index (MFI), which measures liquidity inflows and outflows in the market, revealed that there has been a massive outflow of liquidity in the last 24 hours. The MFI falling lower confirmed that market participants are likely selling the memecoin. The spot market netflows data underlined a possible value for the amount of FLOKI sold during this timeframe. At the time of writing, the netflows were minimal, with only $263,000 worth of FLOKI sold. This minimal selling pressure, with no notable spike, could be a case of profit-taking or cutting losses, meaning long-term holders remain confident in a possible market push to the upside, adding to the bullish outlook.

While some spot market participants are selling, others are placing long bets. In the FLOKI Futures market, significant buying activity was recorded among traders on a notable exchange. At the time of writing, the long-to-short ratio was 1.69, confirming that there is more buying than selling ongoing in the Futures market. Since this buying volume is coming from a notable exchange, it could positively impact the asset’s price. The bullish sentiment is gradually being established as the OI-weighted funding rate has been gradually rising from the negative zone. The rate moved from -0.0518% to -0.0271% and is trending upwards again. If it continues into the positive zone, it’s likely that FLOKI will see significant gains, following the path outlined in the Bollinger Bands chart.